The aim is to protect the debtor’s rights and to protect the debts’ rights. In case of bankruptcy, the debtor pays his / her debts in the due date while in the case of bankruptcy, the debtor shall be able to collect both the creditor’s receivable in the course of the concordat process, in the event of bankruptcy (in case of bankruptcy, the debtor is divided into all creditors, and the debtor may continue its commercial activities instead of going bankrupt.”
The aim is to protect the debtor’s rights and to protect the debts’ rights. In case of bankruptcy, the debtor pays his / her debts in the due date while in the case of bankruptcy, the debtor shall be able to collect both the creditor’s receivable in the course of the concordat process, in the event of bankruptcy (in case of bankruptcy, the debtor is divided into all creditors, and the debtor may continue its commercial activities instead of going bankrupt.
Law No. 7101 on Execution and Bankruptcy (ICC) and the Amendment of Some Laws, the Bankruptcy Procrastination was completely abolished and Konkordato application was introduced. Concordat is mainly included in the 2004 CMB. Subsequent to the amendment to the Law No. 7101, amendments to the provisions of Concordat have also been made in the indicated Law no.
The main purpose of the concordatum is to give extra time to current debts, or to make changes to debts to the debtor who cannot pay or cannot pay the debts even though the maturity is due. The important point here is that it does not matter whether the borrower is a person, person or company. So concordat is an application that covers everyone. In another sense, the court examines the debtor’s debts with documents submitted. In the light of the documents presented, it is judged that the debtor will be able to pay the debts when the additional maturity or submission method for current debts is made.
The transparency, consistency of the documents and the applicability of the project prepared to pay the debts are the most important criteria. The demand for concordat can be made by the debtor or creditor. No. 285-309. The provisions of the law on concordat are included in the articles.
According to the Execution and Bankruptcy Law No. 2004, the debtor shall not be able to meet at least 50% of the assets of the debtor and the debtor’s bid is compatible with its assets. But; As we have seen from the debtor companies, the most important point that the court and the law emphasizes is the debtor; this is an honest way of doing the application. The application is made to the court of first instance, which is the settlement of the debtor. In this application, the advance payment for the court has to be deposited.
In the light of the documents submitted to the court, a 3-month provisional concordatant is announced if the request for concordat is accepted by the court. The court appoints the Interim Commissioner for Committees for this process. The powers and duties of the Commissioner are available in the paper we have previously shared. (Duties of the Commissioner in Temporary Authority)
According to the statement of the clients of the creditor and the parties to the debtor, the court committee may give an additional period of 2 months. If the commissioner states that the debtor cannot repay the debts, or if there are other situations in which to prevent concordat, the court panel may terminate the concordat process and decide the bankruptcy of the debtor.
If an additional period of 2 months has been granted, the decision of the commissioner, the report submitted to the court by the commissioner, and the decision of the debtor’s clients shall be subject to a definite deadline. Otherwise, the bankruptcy shall be decided. In case a final decision is announced, the establishment of the creditors board is put into effect. As it is a comprehensive topic, you can get information about this topic in our next article.
The final deadline covers 1 year from the date of decision. In other words, the concordat process lasts for another year after a definite deadline. At the end of this period, the court may also give additional time to the commissioner according to the declarations of the creditor and the debtor clients. This period is 6 months. After this time is over, concordatia is terminated. If the debtor pays his debts or agrees to pay by creditors, the debtor company continues to operate, otherwise the bankruptcy will fail.